Mobile Payment Station System and Method

ABSTRACT

A mobile device is used to initiate and execute a transaction between a customer and a merchant. A mobile device is used to initiate a point of sale transaction, wherein a merchant ID is sent to a payment processing server. Responsive to receiving a communication from the mobile device, the payment processing server requests transaction information from the merchant, wherein the merchant is identified based on the provided merchant ID. The merchant can provide transaction information such as the total sale amount to the payment processing server. The payment processing server can authenticate the customer and initiate a purchase transaction with the appropriate financial institutions associated with the customer and the merchant. The payment processing server can send a confirmation of the executed transaction to the merchant and the mobile device.

RELATED APPLICATIONS

This application is a continuation application of U.S. application Ser.No. 12/906,989 filed on Oct. 18, 2010, and claims priority from U.S.provisional application No. 61/279,322 filed on Oct. 19, 2009, each ofwhich is incorporated by reference herein in its entirety.

FIELD OF THE INVENTION

This invention generally relates to the field of electronic commerce andmore particularly to using mobile communication devices to execute acommercial transaction.

BACKGROUND OF THE INVENTION

Using a credit card, debit card, payroll card, senior benefit card, ATMcard or any stored value card (hereafter credit card) and a point ofsale terminal to purchase one or more items from a merchant has becomecommonplace. For example, in order to initiate a point of sale, amerchant can enter the total sale amount in a terminal. The merchant canreceive a credit card from the customer to process the sale. Once thecustomer's credit card information is entered in a point of saleterminal, the information is sent to servers associated with a clearinghouse. The clearinghouse can authenticate the credit information androute the transaction based on the routing numbers associated with thecredit card. The clearing house can execute a transaction with anappropriate financial institution and provide a confirmation of theexecuted transaction to the merchant's point of sale terminal. Themerchant can print a confirmation of the executed transaction to receivea customer's approval.

Such a method of executing a transaction is beneficial because it isquick and reliable. Additionally, the customer can execute a purchase atany time regardless of whether the customer has cash on hand to purchasea product. However, such a method of executing transactions requiresthat the customer have a credit card. A customer can use the convenienceof a card to execute transactions through a debit card if the customerhas an associated debit account. However, many customers do not havebank accounts, and therefore do not have debit cards. Similarly, somecustomers, such as kids under a certain age may not have access to orqualify for a credit card but nevertheless may need a secure method ofexecuting a transaction for purchase of goods.

Additionally, a customer using a credit card runs the risk of creditcard fraud or fraudulent transactions. For example, if a customer'scredit card is lost or stolen, another person who is not the owner ofthe card can execute a transaction with the card by simply presentingthe card to a merchant. Since the merchant initiates the point of salefor each transaction, the clearing house and the financial institutionsmay not catch a fraudulent transaction unless reported by the owner ofthe credit card.

A customer may also not be able to use credit processing systems toexecute a purchase if the customer does not have his or her cardavailable at the merchant site. For example, a customer cannot borrowsomeone else's credit card to execute a transaction associated with hisor her own account. Thus, credit cards or cards associated withfinancial institutions provide a less than optimal method for executinga transaction associated with a customer's credit or financial account.

A customer may also not be able to use credit processing systems toexecute a purchase if the customer's card has a defective magneticstrip, chip or the electronic near field communication (NFC) apparatuson the card is defective. Additionally, a customer may be unable to usecredit processing systems to execute a purchase if the point of saleterminal at the store is defective or has a defective NFC receiver thatprevents it from reading card information.

SUMMARY OF THE INVENTION

It is a general object of the present invention to allow a customer touse a mobile communications device to initiate and execute a transactionby reversing the conventional direction of point of sale transactioninitiation; that is the processing server opens communications towardspoint of sale terminal utilizing merchant ID or point of sale terminalID, instead of the conventional method of point of sale terminal openingcommunications towards processing server.

It is a general object of the present invention to allow a customer touse a mobile communications device to initiate and execute atransaction, which overcomes the aforementioned problems with using acredit or debit card by taking advantage of the prevalence of mobilecommunications devices and the communications abilities of mobiledevices.

It is also a general object of the present invention to allow a customerto use other methods such as calling an interactive voice response (IVR)system and using voice or dual-tone multi-frequency (DTMF) commands on alandline to initiate and execute a transaction, which overcomes theaforementioned problems with using a credit or debit card by takingadvantage of the prevalence of telecommunication methods availabletoday.

A mobile device can be used to initiate and execute a transaction with amerchant. A mobile device is used to initiate a point of saletransaction, wherein a merchant ID or, for example, a point of saleterminal ID (hereafter called “merchant ID”) is sent to a paymentprocessing server. Responsive to receiving a communication from themobile device, the payment processing server requests transactioninformation from the merchant, wherein the merchant is identified basedon the provided merchant ID. The merchant can provide transactioninformation such as the total sale amount to the payment processingserver. The payment processing server can authenticate the customer andinitiate a purchase transaction with the appropriate financialinstitutions associated with the customer and the merchant. The paymentprocessing server can send a confirmation of the executed transaction tothe merchant and the mobile device.

It is another general object of the present invention to use a point ofsale terminal associated with a merchant to execute a transactionbetween a merchant and a customer. A merchant can provide point of saleinformation including the purchase amount, merchant ID and an accountphone number associated with the customer. An account phone number caninclude a financial institution account number that belong to thecustomer, a phone number that is associated with a financial accountnumber that belongs to the customer, a phone number that is used as anaccount number in a financial institution hereafter referred to as“account phone number.”. Responsive to receiving point of saleinformation from the merchant, a payment processing server identifies anaccount associated with the account phone number and sends anauthorization request to the account phone number. The customer canenter authorization personal identification information on acommunications device and send it to the payment processing server. Thepayment processing server can authenticate the customer and initiate apurchase transaction with the appropriate financial institutionsassociated with the customer and the merchant. The payment processingserver can send a confirmation of the executed transaction to themerchant and the mobile device.

It is another general object of the present invention to use a payrollaccount associated with an account phone number to execute a transactionbetween a merchant and a customer. The point of sale transaction can beinitiated by the merchant using the point of sale terminal or by acustomer using a communications device or via an IVR call. A servicedata point (SDP) receives a merchant ID associated with the merchant andthe account phone number associated with the customer and the payrollaccount. The payment processing server sends an authorization request tothe account phone number. The customer can enter an authorizationpersonal identification number on a mobile device associated with theaccount phone number and send it to the SDP. The SDP can authenticatethe customer associated with the payroll account and initiate thepurchase transaction between the merchant and the payroll accountassociated with the customer. The SDP can send a confirmation of theexecuted transaction to the merchant and the mobile device. Thefunctionality of an SDP can be integrated in the mobile enablementcenter 106 and can be called either SDP or Mobile enablement center andvice versa. Similarly, the mobile enablement functionality center'sfunctionality can be integrated in an SDP and be called the mobileenablement center or the SDP. For instance an implementation describedbelow using an SDP can be carried out in a mobile enablement center andvice versa.

The features and advantages described in the specification are not allinclusive and, in particular, many additional features and advantageswill be apparent to one of ordinary skill in the art in view of thedrawings, specification, and claims. Moreover, it should be noted thatthe language used in the specification has been principally selected forreadability and instructional purposes, and may not have been selectedto delineate or circumscribe the inventive subject matter.

BRIEF DESCRIPTION OF THE DRAWINGS

FIG. 1 is a high-level block diagram that illustrates a computingenvironment for using a mobile device to initiate a transactionaccording to one embodiment.

FIG. 2 is a flowchart illustrating a method of using a mobile device toinitiate a transaction according to one embodiment.

FIG. 3 is a high-level block diagram illustrating a detailed view of apayment processing server for initiating a transaction using a mobiledevice according to one embodiment.

FIG. 4 is a high-level block diagram that illustrates a computingenvironment for using a mobile device to initiate a transactionaccording to one embodiment.

FIG. 5 is a flowchart illustrating a method of using a mobile device toexecute a transaction according to one embodiment.

FIG. 6 is a high-level block diagram that illustrates a computingenvironment for using a mobile device to execute a transaction accordingto one embodiment.

FIG. 7 is a flowchart illustrating a method of using a mobile device toexecute a transaction according to one embodiment.

FIG. 8 is a high-level block diagram that illustrates a computingenvironment for using a mobile device to execute a transactionassociated with a sub-account according to one embodiment.

FIG. 9 is a flowchart illustrating a method of using a mobile device toexecute a transaction associated with a sub-account according to oneembodiment.

FIG. 10 is a high-level block diagram that illustrates a computingenvironment for using a payroll card to execute a transaction accordingto one embodiment.

FIG. 11 is a flowchart illustrating a method of using a payroll card toexecute a transaction according to one embodiment.

The figures depict various embodiments of the present invention forpurposes of illustration only. One skilled in the art will readilyrecognize from the following discussion that alternative embodiments ofthe structures and methods illustrated herein may be employed withoutdeparting from the principles of the invention described herein.

DETAILED DESCRIPTION OF THE INVENTION

A preferred embodiment of the present invention is now described withreference to the figures where like reference numbers indicate identicalor functionally similar elements. Also in the figures, the left mostdigit(s) of each reference number corresponds to the figure in which thereference number is first used.

Reference in the specification to “one embodiment” or to “an embodiment”means that a particular feature, structure, or characteristic describedin connection with the embodiments is included in at least oneembodiment of the invention. The appearances of the phrase “in oneembodiment” or “an embodiment” in various places in the specificationare not necessarily all referring to the same embodiment.

Some portions of the detailed description that follows are presented interms of algorithms and symbolic representations of operations on databits within a computer memory. These algorithmic descriptions andrepresentations are the means used by those skilled in the dataprocessing arts to most effectively convey the substance of their workto others skilled in the art. An algorithm is here, and generally,conceived to be a self-consistent sequence of steps (instructions)leading to a desired result. The steps are those requiring physicalmanipulations of physical quantities. Usually, though not necessarily,these quantities take the form of electrical, magnetic, electromagnetic,radio or optical signals capable of being stored, transferred, combined,compared and otherwise manipulated. It is convenient at times,principally for reasons of common usage, to refer to these signals asbits, values, elements, symbols, characters, terms, numbers, or thelike. Furthermore, it is also convenient at times, to refer to certainarrangements of steps requiring physical manipulations or transformationof physical quantities or representations of physical quantities asmodules or code devices, without loss of generality.

However, all of these and similar terms are to be associated with theappropriate physical quantities and are merely convenient labels appliedto these quantities. Unless specifically stated otherwise as apparentfrom the following discussion, it is appreciated that throughout thedescription, discussions utilizing terms such as “processing” or“computing” or “calculating” or “determining” or “displaying” or“determining” or the like, refer to the action and processes of acomputer system, or similar electronic computing device (such as aspecific computing machine), that manipulates and transforms datarepresented as physical (electronic) quantities within the computersystem memories or registers or other such information storage,transmission or display devices.

Certain aspects of the present invention include process steps andinstructions described herein in the form of an algorithm. It should benoted that the process steps and instructions of the present inventioncould be embodied in software, firmware or hardware, and when embodiedin software, could be downloaded to reside on and be operated fromdifferent platforms used by a variety of operating systems. Theinvention can also be in a computer program product which can beexecuted on a computing system.

The present invention also relates to an apparatus for performing theoperations herein. This apparatus may be specially constructed for thepurposes, e.g., a specific computer, or it may comprise ageneral-purpose computer selectively activated or reconfigured by acomputer program stored in the computer. Such a computer program may bestored in a non-transitory computer readable storage medium, such as,but is not limited to, any type of disk including floppy disks, opticaldisks, CD-ROMs, magnetic-optical disks, read-only memories (ROMs),random access memories (RAMs), EPROMs, EEPROMs, magnetic or opticalcards, application specific integrated circuits (ASICs), or any type ofmedia suitable for storing electronic instructions, and each coupled toa computer system bus. Memory can include any of the above and/or otherdevices that can store information/data/programs. Furthermore, thecomputers referred to in the specification may include a singleprocessor or may be architectures employing multiple processor designsfor increased computing capability.

The algorithms and displays presented herein are not inherently relatedto any particular computer or other apparatus. Various general-purposesystems may also be used with programs in accordance with the teachingsherein, or it may prove convenient to construct more specializedapparatus to perform the method steps. The structure for a variety ofthese systems will appear from the description below. In addition, thepresent invention is not described with reference to any particularprogramming language. It will be appreciated that a variety ofprogramming languages may be used to implement the teachings of thepresent invention as described herein, and any references below tospecific languages are provided for disclosure of enablement and bestmode of the present invention.

In addition, the language used in the specification has been principallyselected for readability and instructional purposes, and may not havebeen selected to delineate or circumscribe the inventive subject matter.Accordingly, the disclosure of the present invention is intended to beillustrative, but not limiting, of the scope of the invention, which isset forth in the claims.

FIG. 1 is a high-level block diagram that illustrates a computingenvironment for using a mobile device to initiate a transactionaccording to one embodiment. The computing environment may include amobile device 102, a mobile enablement center 106, a register of paymentprocessing servers 108, a payment processing server 110, a merchant 104and a financial institution 116.

FIG. 2 is a flowchart illustrating a method of using a mobile device toinitiate a transaction according to one embodiment. For the purposes ofdiscussion below, FIGS. 1 and 2 are discussed concurrently.

In one embodiment, the mobile device 102 initiates a point of saletransaction. A mobile device 102 can include any computing device havinga processor and capability to communicate with others over a network ora communications link. Examples of a mobile device 102 include acellular phone, personal device assistant (PDA), smart phone, laptopcomputer, desktop computer or other devices. The mobile device sends amerchant ID associated with a merchant to the payment processing server106. The merchant ID number is a unique identifier associated with amerchant. The merchant ID can include any information to identify orcommunicate with the associated number. For example, a merchant ID caninclude a point-of-sale terminal ID to be used by the merchant toexecute the transaction. In other embodiments, the merchant ID caninclude an e-mail address or a phone number associated with themerchant.

In one embodiment, the customer can enter the merchant ID on to themobile device 102 using the mobile device's input system, such as akeyboard or a touchpad etc. In other embodiments, the merchant IDinformation can be received by a camera on the mobile device 102. Inother embodiments, the merchant ID information can be displayed in plainview for customer to use. In other embodiments, the merchant IDinformation can be displayed in alphanumeric or bar code format forcustomer to use. In other embodiments, the merchant ID information canbe received by the mobile device 102 through a communications link suchas BLUETOOTH communications or RFID communications fields. For example,a merchant can have a point-of-sale terminal which broadcasts themerchant ID to mobile devices via a BLUETOOTH, laser, radio, infrared orclose range electromagnetic field communications link. In oneembodiment, the mobile device 102 sends the received merchant ID toanother party over a communications network.

The mobile device 102 can use any available communications (COMM) methodto send the merchant ID to the mobile enablement center 106. It can useunstructured supplementary service data (USSD), short message service(SMS), multi-media message service (MMS), IVR, email, short messagepeer-to-peer (SMPP), Internet browser, an application executing on amobile device, widget executing on a computing device, hard button(key), soft button (key) or any communication method available in theart in various wired or wireless technologies such as but not limited tocode division multiple access (CDMA), wideband code divisional multipleaccess (WCDMA), integrated digital enhanced network (iDEN), GlobalSystem for Mobile Communications (GSM), one or more generations ofwireless telephone technology, such as 2G, 3G, 4G, or any futuregenerations of wireless telephone technology, Bluetooth, WiFi, worldwideinteroperability for microwave access (WiMAX), Radio (short wave orother), infrared or any other communication method or protocol known inthe art. Such a communication or other examples of communication arereferred to herein, among other names, as COMM.

The mobile device 102 can use any available communications method (COMM)to send the merchant ID to the mobile enablement center 106. In oneembodiment, the mobile device 102 can send the merchant ID in an SMSmessage over a mobile communications network, such as GSM, iDEN or CDMAnetworks in any setup that could be 2G, 3G, 4G or any future evolutionof wireless technology. In other instances, the mobile device can sendmulti-media messages (MMS). For example, the customer can take a pictureof a barcode or a number identifier associated with the merchant ID andsend the picture over a communications network. In another instance anapplication executing on the mobile device 102 can interpret orrecognize the barcode or number identifier associated with the merchantID to send over a communications network. In other embodiments, thecommunications network used by the mobile device 102 depends on thenetwork capabilities of the mobile device 102. For example, the mobiledevice can connect to a WiFi Network and send the merchant ID via emailto the payment processing server 106 over the network. In oneembodiment, the customer can enter the merchant ID via IVR from alandline telephone. In other embodiments, the customer can use a userinterface associated with an application executing on the mobile device102 to send the merchant ID to the mobile enablement center 106 over acommunications network. The network used to connect the mobile device102, the merchant 104, the mobile enablement center 106, the paymentprocessing server 110, the service data point 112 and the financialinstitution 116 is described in greater detail below.

In one embodiment, the merchant ID is sent to an appropriate paymentprocessing server 110. For example, a customer can provide a pre-setpreference, wherein all transactions executed with the mobile device 102are associated with a particular financial institution and routedthrough a particular payment processing server 110. In an embodimentIPV6 protocols can be used to route the communications request to anappropriate payment processing server 110. In another embodiment, themobile device 102 sends the merchant ID to a mobile enablement center106 over a communications network to be routed to an appropriate paymentprocessing server 110.

The mobile enablement center 106 is a platform that routes outgoingmessages from the mobile devices 102 to the appropriate paymentprocessing server 110. The mobile enablement center 106 can receiverouting requests from several service broadcast operators, such asmobile phone network operators, including GSM or CDMA network operators,landline phone operators, LAN operators, etc. For example, when mobiledevices 102, including landline or VOIP phones send an outgoing message,the service broadcast operator associated with the device or the phonenumber receives the outgoing message request. The service broadcastoperator routes the outgoing message to the broadcast operatorassociated with the intended recipient of the message. In an embodimentof the invention, the mobile enablement center 106 receives a routingrequest from the service broadcast operator associated with the mobiledevice 102 or directly from the mobile device 102. In one embodiment,the mobile enablement center 106 routes the message to an appropriatepayment processing server 106 based on the outgoing message's phonenumber, the intended recipient's phone number, the merchant ID includedin the message or any other data associated with the phone number. Forexample, if a user's phone number is associated with a particularfinancial institution 116, the mobile enablement center 106 routes themessage to a payment processing server 110 associated with the financialinstitution 116.

In one embodiment, the payment processing server 110 interrogates aregistry of payment processing servers 108 to identify an appropriatepayment processing server 110. For example a registry of paymentprocessing servers 108 can include a listing of payment processingservers 110 based on the routing numbers or other identificationinformation associated with each financial institution or based oncoordinated new routing mechanism that may be mandated, devised orsupervised by, for example, a standardization body, governmental body orconsortium body of companies or leaders in the field.

A payment processing server 110 is a platform that executes atransaction between a customer, a financial institution 116 associatedwith the customer and a merchant 104. Examples of a payment processingservers 110 include databases maintained by Visa, MasterCard, AmericanExpress, etc. In one embodiment, the payment processing server 110receives 202 the merchant ID from the mobile device 102. In anotherembodiment, the payment processing server 110 receives 202 the merchantID in a message routed by the mobile enablement center 106.

In one embodiment, the payment processing server 110 sends 204 a requestfor transaction information to the merchant 104 associated with thereceived merchant ID. Any communications method (COMM) known in the artcan be used to communicate with the merchant 104. For example, thepayment processing center can send an SMS message, an e-mail message etcto a phone number or an email address associated with the merchant 104.In one embodiment, the merchant ID can be associated with a merchant'sunique point-of-sale terminal. In such an instance, the paymentprocessing server 110 can send a communication to the point theparticular point-of-sale terminal.

The merchant 104 can provide transaction information to send to thepayment processing server 110. Transaction information can include thetotal purchase price for the items the customer wants to purchase, anaccount number associated with the merchant, the mobile phone numberprovided by the customer etc. The merchant 104 can use anycommunications method (COMM) known in art to provide the transactioninformation to the payment processing server 110. In one embodiment, themerchant can enter the total purchase amount on a point-of-saleterminal's keypad. A point of sale terminal can include a stationwherein the merchant can swipe or key-in a customer's credit card ordebit card to execute a purchase transaction. In another embodiment, thepoint of sale terminal can include a computing device, such as a machineto machine (M2M) device, mobile phone, a laptop or desktop computer, atablet etc. In other embodiments, point of sale terminals can includeestablished transaction terminals, such as an ATM or vending machineetc. In an instance where existing transaction terminals such as ATM orcard-swipe terminals are used, the terminals can be updated via afirmware update to enable them to receive transaction informationrequests from a payment processing server 110.

The payment processing server 110 receives 206 transaction informationfrom the merchant 104. In one embodiment, transaction informationincludes a phone number associated with the customer mobile device 102.The payment processing server 110 authenticates the phone numberassociated with the mobile device 102. In one embodiment, the paymentprocessing server 110 authenticates the incoming message's phone numberagainst the service broadcast operator network. For example, if a mobilephone number is associated with the T-MOBILE, the payment processingserver 110 can query the T-MOBILE operator network 311 to identify thean account associated with the mobile phone number.

In another embodiment, the payment processing server 110 queries aregister of data points 414, described in greater detail below.Responsive to the query, the payment processing server 110 receives theaccount information associated with the phone number of the mobiledevice 102 or the identity of the mobile enablement center 106associated with the mobile device's 102 phone number. In one embodiment,the payment processing server 110 queries the mobile enablement center106. Responsive to receiving the query, the mobile enablement center 106queries a register of payment processing server 108 to retrieve theaccount information associated with the mobile device's 102 phonenumber. Once the payment processing server 110 receives the appropriateaccount information, the payment processing server 110 communicates withthe mobile enablement center 106 associated with the mobile device's 102phone number and sends a transaction authorization request to the mobiledevice 102. In one embodiment, the payment processing server 110 sends atransaction authorization to the merchant 102. As described in greaterdetail below, upon receiving a positive transaction authorization frommobile device 102 or the merchant 104, the payment processing server 110initiates a transaction with an financial institution 116 associatedwith the account number.

As described above, the payment processing server 110 can identify anaccount associated with the mobile phone number 102. In one instance,more than one account may be identified as associated with the mobilephone number. In such an embodiment, the payment processing server 110queries a mobile enablement center 106. The mobile enablement center 106identifies an account associated with more than one account such asvirtual accounts or real accounts that are identified as associated withthe mobile phone number. In such an instance, additional logic can beused by the mobile enablement center 106 to identify an account from alist of possible accounts associated with the mobile phone number. Forexample, a user can provide that a debit account should be used forpurchases under a certain dollar amount, such as $5. In anotherembodiment, the customer can associate the use of particular accountswhen executing a transaction with a particular merchant. Thus, thepayment processing server 110 can identify a debit account, if themerchant ID is associated with a retail merchant.

In one embodiment, the payment processing server 110 authenticates themerchant responsive to receiving the transaction information from themerchant. For example, the merchant can be authenticated if the merchantconfirms the merchant ID or the customer mobile phone number initiatingthe transaction. In one instance, the payment processing server 110identifies an account associated with the merchant once theauthentication process is completed.

In one embodiment, the payment processing server 110 sends 208 anauthorization request to the mobile device 102 that initiated thetransaction request. For example, the payment processing server 110sends a COMM, an SMS message or an email to the customer phone number orthe email address initiating the transaction. In one embodiment, thepayment processing server 110 can send 208 an account name and number tothe mobile device 102 along with the authorization request. In anotherembodiment, the customer can provide a phone number associated with acustomer account and a different communications phone number. Forexample, the customer initiating a transaction can provide an accountphone number by initiating a communication from a different phonenumber. In such an instance, the customer can use an applicationexecuting on the communications mobile device 102 to initiate thetransaction or use COMM messaging. In such an instance, the paymentprocessing server 110 sends 208 an authorization request to thecommunications phone number, wherein the customer can provide anauthorization associated with the account phone number. This could applyto a customer borrowing someone else's mobile device to perform his orher own transaction.

In one embodiment, the payment processing server 110 receives 210 anauthorization from a mobile device 102. The authorization message caninclude a personal identification number (PIN) associated the customer'saccount. A customer can set multiple PINs for one or more accounts. Forexample, the customer can set a PIN for purchases under a preset dollaramount and a different PIN for purchases over a dollar amount.Similarly, the customer can set a separate PIN for particular merchants.In another embodiment, the customer can have a distinct PIN (or a onetime use PIN which expires on first use) when the communications phonenumber initiating the transaction is different from the phone numberassociated with the customer. In one embodiment, the mobile device 102associated with the communications phone number is configured to deleteall instances of the PIN from the mobile devices' on-board or off-boardmemory. In such instances, the payment processing server 110 receives210 the authorization PIN from the customer through a communicationsnetwork. In another embodiment, a one-time password (one time use PINwhich expires on first use) can be used by a customer using acommunications phone number different than the account phone number. Forexample, a customer can preset a one-time password (that expires onfirst use) for instances when the communications phone number isdifferent than the account phone number, for purchases over a certaindollar value or for purchases with a particular merchant.

In one embodiment, the payment processing server 110 executes 212 atransaction with a financial institution. For example, the paymentprocessing server 110 identifies a financial institution associated withthe customer's account and a financial institution associated with themerchant's account, wherein the execution of the transaction comprisesof debiting the purchase amount from the customer's account andcrediting the purchase amount to the merchant account. In oneembodiment, additional fees applied by financial institutions 116,payment processing servers 110, mobile enablement centers 106 can beapplied to the purchase amount.

In one embodiment, the payment processing server 110 sends 214 atransaction confirmation to the mobile device 102 and the merchant 104.Any communications method (COMM), such as an SMS message, an emailaddress, a phone call or described below in reference to FIG. 3 can beused to send 214 the confirmations. In one embodiment, the paymentprocessing server 110 sends the confirmation to a point-of-sale terminalassociated with the merchant ID. In such an instance, the point-of-saleterminal can print a copy of the confirmation for the merchant's or thecustomer's records. In an instance wherein the communications phonenumber is different than a phone number associated with the transactionaccount, the payment processing server 110 sends 214 a transactionconfirmation to one or both phone numbers. The confirmationcommunication can include details about whether the transaction wassuccessfully completed, the date and time of the confirmation, the totaltransaction amount etc. In another instance the payment processingserver 110 sends 214 the transaction confirmation via COMM to themerchant's mobile device if one was identified by merchant as preferreddelivery mechanism for confirmations

FIG. 3 is a high-level block diagram illustrating a functional view of atypical computer system 300 for use as one of the entities illustratedin the computing environment of FIG. 1 according to one embodiment. Itis noted that the computing machine 300 may also be a system or part ofa system, e.g., two or more machines operating together or one or moremachines operating with one or more other devices.

FIG. 3 illustrates components of a machine able to read instructionsfrom a machine-readable medium and execute them in one or moreprocessors and/or controllers. Specifically, FIG. 3 shows a diagrammaticrepresentation of a machine within which mobile payment deviceinstructions 324 (e.g., software code) can be executed to perform anyoneor more of the methodologies discussed herein. In alternativeembodiments, the machine operates as a standalone device or may beconnected (e.g., networked) to other machines. In a networkeddeployment, the machine may operate in the capacity of a server machineor a client machine in a server-client network environment, or as a peermachine in a peer-to-peer (or distributed) network environment.

The machine may be a server computer, a client computer, a personalcomputer (PC), a tablet PC, a set-top box (STB), a personal digitalassistant (PDA), a cellular telephone, a smartphone, a web appliance, anetwork router, switch or bridge, or any machine capable of executinginstructions 324 (sequential or otherwise) that specify actions to betaken by that machine. Further, while only a single machine isillustrated, the term “machine” shall also be taken to include anycollection of machines that individually or jointly execute instructions324 to perform anyone or more of the methodologies discussed herein.

The example computer machine 300 includes a processor 302 (e.g., acentral processing unit (CPU), or group of processors, or a group ofprocessing machines, a graphics processing unit (GPU), a digital signalprocessor (DSP), one or more application specific integrated circuits(ASICs), one or more radio-frequency integrated circuits (RFICs), or anycombination of these), a memory 304, including a main memory and astatic memory, a network interface device 320 capable of interactingwith a network 310, an input/output device 312 (e.g., a keyboard, acursor control device, a plasma display panel (PDP), a liquid crystaldisplay (LCD), a projector, or a cathode ray tube (CRT)) and a storageunit 316 configured to communicate with each other via a bus.

The storage unit 316 includes a machine-readable medium 322 on which isstored mobile payment device instructions 324 (e.g., software) embodyingany one or more of the methodologies or functions described herein. Themobile payment instructions 224 (e.g., software) may also reside,completely or at least partially, within the main memory 304 or withinthe processor 302 (e.g., within a processor's cache memory) duringexecution thereof by the computer system 300, the main memory 304 andthe processor 302 also constituting machine-readable media.

The external storage 317 includes a machine-readable medium on whichmobile device or merchant information can be stored. In one embodiment,the machine 300 can access the external storage 317 via a communicationslinks, as described above. In an embodiment, all components of themachine 300 can access the storage medium 317.

While machine-readable medium 322 is shown in an example embodiment tobe a single medium, the term “machine-readable medium” should be takento include a single medium or multiple media (e.g., a centralized ordistributed database, or associated caches and servers) able to storeinstructions (e.g., mobile payment device instructions 324). The term“machine-readable medium” shall also be taken to include any medium thatis capable of storing instructions (e.g., mobile payment deviceinstructions 324) for execution by the machine and that cause themachine to perform any one or more of the methodologies disclosedherein. The term “machine-readable medium” includes, but not be limitedto, data repositories in the form of solid-state memories, opticalmedia, and magnetic media.

The mobile payment device instructions 324 (e.g., software) may betransmitted or received over the network 310 via the network interfacedevice 320. In one embodiment, the network 310 is the Internet. Thenetwork 310 can also utilize dedicated or private communications linksthat are not necessarily part of the Internet. In one embodiment, thenetwork 114 uses standard communications technologies and/or protocols.Thus, the network 114 can include links using technologies such asEthernet, Wi-Fi (802.11), integrated services digital network (ISDN),digital subscriber line (DSL), asynchronous transfer mode (ATM), etc.Similarly, the networking protocols used on the network 114 can includemultiprotocol label switching (MPLS), the transmission controlprotocol/Internet protocol (TCP/IP), the hypertext transport protocol(HTTP), the simple mail transfer protocol (SMTP), the file transferprotocol (FTP), etc. In one embodiment, at least some of the links usemobile networking technologies, including general packet radio service(GPRS), enhanced data GSM environment (EDGE), code division multipleaccess 2000 (CDMA2000), and/or wide-band CDMA (WCDMA). The dataexchanged over the network 114 can be represented using technologiesand/or formats including the hypertext markup language (HTML), theextensible markup language (XML), the wireless access protocol (WAP),the short message service (SMS) etc. In addition, all or some of linkscan be encrypted using conventional encryption technologies such as thesecure sockets layer (SSL), Secure HTTP and/or virtual private networks(VPNs). In another embodiment, the entities can use custom and/ordedicated data communications technologies instead of, or in additionto, the ones described above.

The example computer machine 300 includes a mobile network enablementunit 325 which includes the logic software (SLEE—Service Logic ExecutionEnvironment) and hardware for connecting to connect, control andcommunicate with any mobile network operator's node, any messaging node(such as a short message service center (SMSC), a multimedia messageservice center (MMSC), mail transport/transfer agent (MTA), wirelessaccess protocol (WAP), database (DB), (session description protocol)SDP, service control point (SCP), mobile switching center (MSC), centraloffice (CO) for wired communications, service switching point (SSP),authentication, authorization and access/accounting (AAA), gateway GPRS(general packet radio service) support node (GGSN), combined GPRS node(CGSN), packet data servicing node (PDSN), or any other node that mayexists in the operator network regardless of the technology used (CDMA,WCDMA, iDEN, GSM, 2G, 3G, 4G, or future revisions of the wirelesscommunications system, Bluetooth, WiFi, WiMax, Radio (short wave orother), infrared or any other communication method or protocol known inthe art). Mobile network enablement unit 325 supports all communicationprotocols and standards including but not limited to instant messagingservice (IMS), signaling system 7 (SS7), internet protocol (IP),transport/transmission control protocol (TCP), transaction capabilitiesapplication part (TCAP), intelligent network application protocol(INAP), mobile application part/multiple access protocol (MAP), CS1,CS2, CS3, CS4, common alerting protocol version 1 (CAP v1), CAPv2,CAPv3, CAPv4, all wireless intelligent network (WIN) standards, allintelligent network (IN) standards and all advanced intelligent network(AIN) standards, etc. In one embodiment, the mobile network enablementunit 325 communicates with a mobile operator network 311. As describedin greater detail above, the mobile operator network 311 includes CDMA,WCDMA, iDEN, GSM, 2G, 3G, 4G, or future revisions of the wirelesscommunications system.

Referring now to FIG. 4, it illustrates a high-level block diagram of acomputing environment for using a mobile device to initiate atransaction according to one embodiment. The computing environment mayinclude a mobile device 102, a mobile enablement center 106, a registerof payment processing servers 108, a payment processing server 110, amerchant 104, a service data point 412, a register of service datapoints 414 and a financial institution 116.

FIG. 5 is a flowchart illustrating a method of using a mobile device toinitiate a transaction using a service data point according to oneembodiment. For the purposes of discussion, FIGS. 4 and 5 are discussedconcurrently below.

As described in greater detail above, the mobile device 102 initiates atransaction request by sending a merchant ID to the mobile enablementcenter 106 or the payment processing server 110. The payment processingserver 110 receives 502 the merchant ID and sends 504 a transactioninformation request to the merchant associated with the merchant ID. Asdescribed above, any communications method (COMM) known in the art canbe used to communicate with the merchant 104. For example, the paymentprocessing center can send an SMS message, an e-mail message etc to aphone number or an email address associated with the merchant 104. Inone embodiment, the merchant ID can be associated with a merchant'sunique point-of-sale terminal. In such an instance, the paymentprocessing server 110 can send a communication to the point theparticular point-of-sale terminal. The payment processing server 110 canalso use the commonly known ISO8583 interface to communicate with thepoint of sale terminal.

Service data point (also referred to as SDP) is a computing machinewith, for example, all the components described above in 300, thattelecommunication operators normally use to store service logic andsubscriber account balances, subscriptions, services, expiration ofservice dates, etc. SDPs have multiple names in different operator andvendor environments, for the purpose of this disclosure SDP refers toany and all of those nodes equivalent in function as described herein.

In one embodiment, the SDP can be used for banking, financial,investment and/or insurance operations such as keeping track of accountbalances, debiting accounts, crediting accounts and transferring ofaccount funds from one account to another. A centralized SDP or SDPRegister can be used to provide routing information to signals destinedto a certain SDP. In an embodiment, an SDP register can be under thecontrol, jurisdiction (auspices) of a governmental or consortium bodythat would regulate its functions and management.

In one embodiment the SDP communicates with financial institutions 116,ATM machines, point of sale terminals, a mobile enablement center 106and/or a merchant 104 for the purpose of processing point of saletransactions with financial institutions or payment processing servers110. For example SDP will support any standard data communicationprotocol and data security standards such as, but not limited to,International Standards Organization (ISO) 8583, simple object accessprotocol (SOAP)/extensible markup language (XML), SOAP, hypertexttransfer protocol (HTTP), secure sockets layer (SSL), etc.

In one embodiment, the payment processing server 110 identifies 504 aservice data point (SDP) responsive to a phone number provided by themobile device 102. The phone number is a customer phone numberassociated with the customer's banking account that is controlled bySDP. A service data point 412 is a database where customer phone numbersare stored in addition to customer account information, and where thecustomer's account information can be retrieved based on its associatedwith the provided phone number. In one embodiment, the service datapoint 412 can be used to control financial institution accounts.

In one embodiment, the payment processing server cannot identify anappropriate SDP based on the provided account phone number. In such aninstance, the payment processing system sends an interrogation requestto the registry of SDPs 414 to identify 504 an SDP associated with thecustomer's account phone number. The registry of SDPs 414 provides therouting information to an SDP 412 associated with the customer's bankingaccount.

Once an appropriate SDP 412 is identified, the payment processing serverinterrogates the SDP to receive 506 account information associated withthe customer's phone number. The SDP 412 can retrieve accountinformation associated with the customer's phone number.

As described above, the payment processing server 110 sends 508 atransaction information request to the merchant indentified by themerchant ID. Responsive to the request, the merchant can sendtransaction information to the payment processing server. In oneembodiment, the payment processing server receives 510 the transactioninformation from the merchant via communications means known in thearts. As described above, the transaction information can include thetotal purchase price for the items the customer wants to purchase, anaccount number associated with the merchant, the mobile phone numberprovided by the customer etc. The merchant 104 can use anycommunications method (COMM) known in art to provide the transactioninformation to the payment processing server 110. In one embodiment, themerchant can enter the total purchase amount on a point-of-saleterminal's keypad.

As described above, in one embodiment, the payment processing server 110sends 512 an authorization request to the mobile device 102 thatinitiated the transaction request. For example, the payment processingserver 110 sends a COMM, an SMS message or an email to the customerphone number or the email address initiating the transaction. In oneembodiment, the payment processing server 110 can send 512 an accountname and number to the mobile device 102 along with the authorizationrequest. In another embodiment, the customer can provide a phone numberassociated with a customer account and a different communications phonenumber. For example, the customer initiating a transaction can providean account phone number by initiating a communication from a differentphone number. In such an instance, the customer can use an applicationexecuting on the communications mobile device 102 to initiate thetransaction, or do it using COMM messaging. In such an instance, thepayment processing server 110 sends 512 an authorization request to thecommunications phone number, wherein the customer can provide anauthorization associated with the account phone number.

In one embodiment, the payment processing server 110 receives 514 anauthorization message from a mobile device 102. The authorizationmessage can include a personal identification number (PIN) associatedthe customer's account. A customer can set multiple PINs for one or moreaccounts. For example, the customer can set a PIN for purchases under apreset dollar amount and a different PIN for purchases over a dollaramount. Similarly, the customer can set a separate PIN for particularmerchants. In another embodiment, the customer can have a distinct PIN(or a one time use PIN which expires on first use) when thecommunications phone number initiating the transaction is different fromthe phone number associated with the customer. In one embodiment, themobile device 102 associated with the communications phone number isconfigured to delete all instances of the PIN from the mobile devices'on-board or off-board memory. In such instances, the payment processingserver 110 receives 514 the authorization PIN from the customer througha communications network. In another embodiment, a one-time password (ora one time use PIN which expires on first use) can be used by a customerusing a communications phone number different than the account phonenumber. For example, a customer can preset a one-time password (thatexpires on first use) for instances when the communications phone numberis different than the account phone number, for purchases over a certaindollar value or for purchases with a particular merchant.

Once a correct authorization code e.g., a PIN is received from themobile device 102, the payment processing server executes the requestedtransaction with the SDP 412. The SDP 412 updates the accountinformation associated with the customer. The payment processing server110 sends a transaction confirmation to the mobile device 102 and themerchant 104. As described above, in one embodiment, the paymentprocessing server 110 sends 518 a transaction confirmation to the mobiledevice 102 and the merchant 104. Any communications method (COMM), suchas an SMS message, an email address, a phone call or described above canbe used to send 518 the confirmations. In one embodiment, the paymentprocessing server 110 sends 518 the confirmation to a point-of-saleterminal associated with the merchant ID. In such an instance, thepoint-of-sale terminal can print a copy of the confirmation for themerchant's or the customer's records. In an instance wherein thecommunications phone number is different than a phone number associatedwith the transaction account, the payment processing server 110 sends518 a transaction confirmation to one or both phone numbers. Theconfirmation communication can include details about whether thetransaction was successfully completed, the date and time of theconfirmation, the total transaction amount etc.

FIG. 6, illustrates a high-level block diagram of a computingenvironment for using a mobile device to execute a transaction accordingto one embodiment. The computing environment may include a mobile device102, a payment processing server 110, a merchant 104 and a financialinstitution 116.

FIG. 7 is a flowchart illustrating a method of using a mobile device toinitiate a transaction using a service data point according to oneembodiment. For the purposes of discussion, FIGS. 6 and 7 are discussedconcurrently below.

In one embodiment of the system and method described below, the point ofsale is initiated by the merchant. In one embodiment, a point of saleterminal associated with the merchant 104 is used to enter and sendpoint of sale information such as a transaction amount, a communicationsphone number and an account phone number. An account phone number is aphone number associated with a financial institution. For example, thecustomer can preset that a particular phone number is associated with aparticular account with a financial institution. The account can be acredit account, a debit account, a savings account, a payroll account,etc. A communications phone number can be the phone number associatedwith the customer. In another instance, the communications phone numberis different from an account phone number, allowing a customer to use aborrowed phone to execute a transaction. For example, if a customerrealizes that he or she lost or forgot his or her mobile phone, thecustomer can borrow someone else's phone by requesting that acommunication be sent to the phone number associated with the borrowedphone. In other embodiments, the customer can provide a communicationsemail address or an account email address wherein, the email account isassociated with a financial institution's account for the customer.

In one embodiment, the payment processing server 110 receives 702 thepoint of sale information from the merchant 104. The payment processingserver 110 sends 704 an authorization request to the communicationsphone number provided by the merchant 104. As described above, in oneembodiment, the payment processing server 110 sends 704 an authorizationrequest to the communications phone number or the account phone numberas provided by the customer. In one embodiment, the payment processingserver 110 sends a COMM, an SMS message or an email to the phone numberor the email address initiating the transaction. In one embodiment, thepayment processing server 110 can send 704 an account name and number tothe mobile device 102 along with the authorization request. For example,if the customer has associated several credit or debit accounts with anaccount phone number, the payment processing server 110 can provide alisting of all the accounts available to the customer. In such aninstance the payment processing server 110 opens a data session to themobile device 102 and provides a menu to choose from wherein thecustomer can choose the account to execute the transaction with. Inanother embodiment, the payment processing server 110 uses a USSD menuoption if available in the network or a WAP push message with severallinks denoting various accounts, or communicate to a client on themobile device 102. Also, in such an instance, the customer can enter anauthorization PIN for an account the customer wishes to use to executethe purchase. In another embodiment, the payment processing systemrequests one PIN even if the customer has associated several accountswith the account phone number. In such an instance, the customer canenter the authorization PIN for the account the customer wants to use toexecute the purchase. The payment processing server 110 can identify acredit or a debit account based on whether the authorization PIN matchesone of accounts associated with the account phone number.

In one embodiment, the customer can enter and send a message to thepayment processing server 110 to authorize the transaction. The paymentprocessing server 110 receives 706 the authorization from a mobiledevice 102. The authorization message can include a personalidentification number (PIN) associated with the customer's account. Acustomer can set multiple PINs for one or more accounts. For example,the customer can set a PIN for purchases under a preset dollar amountand a different PIN for purchases over a dollar amount. Similarly, thecustomer can set a separate PIN for particular merchants. In anotherembodiment, a one-time password (or a one time use PIN which expires onfirst use) or PIN can be used by a customer when using a communicationsphone number different than the account phone number. For example, acustomer can preset a one-time password (that expires on first use) forinstances when the communications phone number is different than theaccount phone number, for purchases over a certain dollar value or forpurchases with a particular merchant. In one embodiment, the mobiledevice 102 associated with the communications phone number is configuredto delete all instances of the PIN from the mobile devices' on-board oroff-board memory. In such instances, the payment processing server 110receives 706 the authorization PIN from the customer through acommunications network.

Responsive to the customer sending the authorization, the paymentprocessing server 110 receives 706 the authorization from the mobiledevice 102. As described in greater detail above, the payment processingserver executes 708 the point of sale transaction with financialinstitutions associated with the customer and the merchant 104. Once thetransaction is executed 708, the payment processing server sends aconfirmation to the merchant 104, the communication and the accountphone number associated with the customer. As described above, in oneembodiment, the payment processing server 110 sends 710 a transactionconfirmation to the mobile device 102 and the merchant 104. Anycommunications method (COMM), such as an SMS message, an email address,a phone call or described above can be used to send 710 theconfirmations. In one embodiment, the payment processing server 110sends 710 the confirmation to a point-of-sale terminal associated withthe merchant ID. In such an instance, the point-of-sale terminal canprint a copy of the confirmation for the merchant's or the customer'srecords. In an instance wherein the communications phone number isdifferent than a phone number associated with the transaction account,the payment processing server 110 sends 710 a transaction confirmationto one or both phone numbers. The confirmation communication can includedetails about whether the transaction was successfully completed, thedate and time of the confirmation, the total transaction amount etc.

Referring now to FIG. 8, it illustrates a high-level block diagram of acomputing environment for using a mobile device to execute a transactionassociated with a sub-account according to one embodiment. The computingenvironment may include a mobile device 102, an SDP 412, an accountassociated with the mobile phone number 810 and a sub-account associatedwith the mobile phone number 812.

FIG. 9 is a flowchart illustrating a method of using a mobile device toexecute a transaction associated with a sub-account according to oneembodiment. For the purposes of discussion, FIGS. 8 and 9 are discussedconcurrently below.

As described in greater detail above, the mobile device 102 or themerchant 104 can initiate a transaction request by sending a merchant IDand an account phone number to a service data point (SDP) 412. In oneembodiment, the SDP receives 902 the transaction request either from themerchant 104 or from the mobile device 102. In one embodiment, the SDPis interrogated 904 to determine if the received account phone number isassociated with a sub-account. A sub-account 812 is associated with thea parent account 810 wherein the sub-account may have limited access tothe funds available to the parent account 810 or the account associatedwith the mobile phone number. If the SDP determines that the accountphone number is associated with a sub-account, the SDP provides that asub-account criteria is matched 906.

In other embodiments, the sub-account criteria can be matched 906 inother ways. For example, a phone number can be associated with asub-account. In such an instance, if a communications phone numbermatches the sub-account 812 criteria, the SDP executes 912 a transactionwith the sub-account responsive to receiving the appropriateauthorization. In other embodiments, an authorization PIN can beassociated with a sub-account. If the sub-account criteria are met, theSDP sends an authorization request to one or more of the communicationsphone number, a phone number associated with the sub-account or a phonenumber associated with the parent account 810. For example, the SDP orthe payment processing server 110 can send 908 an authorization requestto the account phone number associated with the parent account 810 orthe phone number associated with the sub-account, or both. As such, acustomer can create a sub-account for a family member, such that thecustomer's children or other family members can make certain purchasesusing their own mobile device. Similarly, in an embodiment wherein theauthorization request is sent to a phone number associated with theparent account 810, the parent can provide real-time approval orrejection of certain purchases initiated by the sub-account holder.

As described above, in one embodiment, the payment processing server 110sends 908 an authorization request to an appropriate mobile device 102including the mobile device 102 that initiated the transaction requestor to a phone number associated with the parent account 810. Forexample, the payment processing server 110 sends an SMS message or anemail the phone numbers or the email address provided. In oneembodiment, the payment processing server 110 can send 908 an accountname and number to the appropriate mobile device 102 along with theauthorization request. In another embodiment, the customer can provide aphone number associated with a customer account and a differentcommunications phone number. For example, the customer initiating atransaction can provide an account phone number by initiating acommunication from a different phone number. In such an instance, thecustomer can use an application executing on the communications mobiledevice 102 to initiate the transaction or use COMM messaging. In such aninstance, the payment processing server 110 sends 908 an authorizationrequest to the communications phone number, wherein the customer canprovide an authorization associated with the account phone number.

The SDP can receive 910 the authorization from the sub-account phonenumber, the communications phone number or the phone number associatedwith the parent account 810. The authorization message can include apersonal identification number (PIN) associated the customer's account.A customer can set multiple PINs for one or more accounts. For example,the customer can set a PIN for purchases under a preset dollar amountand a different PIN for purchases over a dollar amount. Similarly, thecustomer can set a separate PIN for particular merchants. In anotherembodiment, the customer can have a distinct PIN (or a one time use PINwhich expires on first use) when the communications phone numberinitiating the transaction is different from the phone number associatedwith the customer. In one embodiment, the mobile device 102 associatedwith the communications phone number is configured to delete allinstances of the PIN from the mobile devices' on-board or off-boardmemory. In such instances, the payment processing server 110 receives910 the authorization PIN from the customer through a communicationsnetwork. In another embodiment, a one-time password (or a one time usePIN which expires on first use) can be used by a customer using acommunications phone number different than the account phone number. Forexample, a customer can preset a one-time password (that expires onfirst use) for instances when the communications phone number isdifferent than the account phone number, for purchases over a certaindollar value or for purchases with a particular merchant.

The SDP can initiate an execution of the transaction between thecustomer and the merchant 104. If the SDP does not receive anappropriate authorization or a sub-account criteria match, the SDPexecutes 914 the transaction with the parent-account 810. As describedin greater detail above, a transaction confirmation is sent to themerchant, the communications phone number, the account phone number orthe sub-account phone number.

FIG. 10 is a high-level block diagram that illustrates a computingenvironment for using a payroll card to execute a transaction accordingto one embodiment. The computing environment may include a mobile device102, a mobile enablement center 106, a register of payment processingservers 108, a payment processing server 110, a merchant 104, a servicedata point 112, a register of service data points 114 and a financialinstitution 116.

In one embodiment the SDP could control an aggregate account (alsoreferred to as a Nostro Account) in a bank that includes multiple subaccounts that can represent payroll accounts. Such payroll accountscould be used for those that cannot establish an account on their ownbecause of lack of sufficient funds or lack of good credit. Suchaggregate accounts could be accessed by any payment processing server110 or SDP if they are associated with a mobile phone number. One suchsubaccount in an aggregate account can have multiple virtual accounts.For example a worker with no bank account would ask employer to use suchsubaccount for direct deposit of payroll. The subaccount would beassociated with the workers mobile phone number. The worker would beable to create multiple virtual sub-subaccounts on the SDP and movefunds to those sub-subaccounts. Each sub-subaccount would be associatedwith a mobile phone and could be accessed by phone with the aid of anypayment processing server 110 or mobile enablement center 106. In oneembodiment the SDP can take the place or perform the functions of themobile enablement center. In one embodiment the SDP can control fundtransfer between banks, phone account numbers and between merchants.

FIG. 11 is a flowchart illustrating a method of using a payroll card toexecute a transaction according to one embodiment. For the purposes ofdiscussion, FIGS. 10 and 11 are discussed concurrently below.

In the embodiment discussed in reference to FIGS. 10 and 11, the pointof sale transaction is initiated by a merchant 104 or a mobile device102, wherein the account phone number is associated with a payroll card1002. A payroll card 1002 can be a debit card associated with a payrollaccount. An employer of the customer using the payroll card can depositpayroll checks in the payroll account. For example, instead of givingthe customer a weekly, bi-weekly or monthly payroll check which can beeither cashed or deposited, the employer can make weekly, bi-weekly ormonthly payroll deposits to the payroll account, such that the employerwould not have to issue new payroll checks each payroll cycle. Such asystem is beneficial because it reduces the employer's cost of issuingchecks. Additionally such a system is beneficial to employees becausethey have access to an account associated with a card which can be usedto make purchases without opening additional accounts or a new line ofcredit with another financial institution. Additionally, each payrollaccount can be associated with a payroll trust account. A payroll trustaccount is an aggregate of accounts used by the employer to makedeposits to each individual payroll account associated with an employee.The payroll trust account generally carries a float and cannot beclosed. As described in greater detail below, an additional benefit ofthe system and method described herein is to allow customers to borrowfunds from the trust account if the funds in the their customer payrollaccounts are depleted. The payroll trust account can withhold money dueto the employee in the next payroll period. The withheld money can be aportion of the borrowed money, the entirety of the borrowed money or theentirety of the borrowed money in addition to fees and interests.

In one embodiment, the payment processing server receives 1102 a requestto execute a transaction from an account associated with the payrollcard 1002. For example, a merchant can swipe or enter the account numberassociated with the payroll card on a point of sale terminal. In such aninstance, the point of sale terminal can receive a firmware update toenable a customer to use a payroll account card to execute a purchase.In another embodiment, a mobile device can be used to initiate a pointof sale transaction. As described above, the mobile device can send anaccount phone number and a merchant identification to a service datapoint (SDP) 412 or to a mobile enablement center 106. In anotherembodiment, as described above, the customer can borrow a mobilecomputing device to initiate a point of sale transaction.

Upon receiving the request, the SDP sends 1104 and receives 1106appropriate authorization information to a mobile phone numberassociated with the payroll account or communications phone number. Asdescribed above, in one embodiment, the SDP 412 sends 1104 anauthorization request to the mobile device 102 associated with thepayroll account. For example, the SDP 412 sends an COMM, SMS message oran email to the customer phone number or the email address associatedwith the payroll account. In one embodiment, the SDP 412 can send 1104an account name and number to the mobile device 102 along with theauthorization request. In another embodiment, the payment processingserver can send 1104 authorization request to communications phonenumber different from the account phone number associated with thepayroll account. For example, a communications phone number can beprovided in the communication received 1102 providing payroll accountinformation to execute a transaction. In such an instance, the customercan use an application executing on a mobile device 102 associated withthe communications phone number to initiate the transaction.

In one embodiment, the SDP 412 receives 1106 an authorization from amobile device 102. The authorization message can include a personalidentification number (PIN) associated the customer's account. Acustomer can set multiple PINs for one or more accounts. For example,the customer can set a PIN for purchases under a preset dollar amountand a different PIN for purchases over a dollar amount. Similarly, thecustomer can set a separate PIN for particular merchants. In anotherembodiment, the customer can have a distinct PIN (or a one time use PINwhich expires on first use) when the communications phone numberinitiating the transaction is different from the phone number associatedwith the customer. In one embodiment, the mobile device 102 associatedwith the communications phone number is configured to delete allinstances of the PIN from the mobile devices' on-board or off-boardmemory. In such instances, the SDP 412 receives 1106 the authorizationPIN from the customer through a communications network. In anotherembodiment, a one-time password (or a one time use PIN which expires onfirst use) can be used by a customer using a communications phone numberdifferent than the account phone number. For example, a customer canpreset a one-time password (that expires on first use) for instanceswhen the communications phone number is different than the account phonenumber, for purchases over a certain dollar value or for purchases witha particular merchant.

An SDP logic identifies whether the payroll account has enough funds1108 to execute the requested transaction. If so, the SDP executes 1112the transaction with a bank associated with the payroll card. If the SDPdetermines that the payroll account does not have sufficient funds, theSDP executes 1110 a transaction with the payroll trust account. Once thetransaction is complete, a transaction confirmation is send to themerchant and the mobile device associated with the payroll account. Inone embodiment, the SDP 412 sends 1114 a transaction confirmation to themobile device 102 and the merchant 104. Any communications method(COMM), such as an SMS message, an email address, a phone call ordescribed above can be used to send 1114 the confirmations. In oneembodiment, the SDP 412 sends 1114 the confirmation to a point-of-saleterminal associated with the merchant ID. In such an instance, thepoint-of-sale terminal can print a copy of the confirmation for themerchant's or the customer's records. In an instance wherein thecommunications phone number is different than a phone number associatedwith the transaction account, the SDP 412 sends 1114 a transactionconfirmation to one or both phone numbers. The confirmationcommunication can include details about whether the transaction wassuccessfully completed, the date and time of the confirmation, the totaltransaction amount etc.

While particular embodiments and applications of the present inventionhave been illustrated and described herein, it is to be understood thatthe invention is not limited to the precise construction and componentsdisclosed herein and that various modifications, changes, and variationsmay be made in the arrangement, operation, and details of the methodsand apparatuses of the present invention without departing from thespirit and scope of the invention as it is defined in the appendedclaims.

What is claimed is:
 1. A method for conducting a transaction between amerchant and a customer using a computing device, the method comprising:receiving a merchant identification from the computing device; sending atransaction information request to a merchant associated with themerchant identification; receiving transaction information from themerchant, the transaction information including the transaction amount;authenticating the computing device and the merchant information;identifying a purchase account associated with the customer and adeposit account associated with the merchant; and initiating thetransaction between the merchant and the customer for the transactionamount.
 2. The method of claim 1, wherein the merchant identificationcomprises a unique identifier associated with a merchant or a uniqueidentifier associated with a merchant's point-of-sale terminal.
 3. Themethod of claim 1, wherein the merchant identification is received fromthe computing device by at least one of communication messages an SMSmessage, an MMS message, an email message or a phone call.
 4. The methodof claim 3, wherein the merchant identification comprises of a numberassociated with the unique merchant identifier, the number being inputon a computing device by a customer, received from a point-of-saleterminal associated with the merchant, or interpreted by an applicationexecuting on the computing device based on depiction of merchantidentification.
 5. The method of claim 1, wherein the transactioninformation request is sent to a point-of-sale terminal associated withthe merchant.
 6. The method of claim 1, wherein a phone numberassociated with the computing device is authenticated on an operatornetwork associated with the computing device.
 7. The method of claim 1,further comprising: sending an authorization request to the mobiledevice; and receiving a correct authorization from the mobile device,the authorization comprising a pre-set personal identification number.8. The method of claim 7, wherein a customer can provide a pre-setpersonal identification number corresponding to one or more purchasingcriteria including, merchant type or purchase amount.
 9. The method ofclaim 1, wherein a purchase account associated with a customer isidentified responsive to the phone number associated with thecommunications device.
 10. The method of claim 1, wherein the purchaseaccount is identified responsive to pre-set criteria associated with thecommunications device's phone number including merchant type or purchaseamount.
 11. The method of claim 1, wherein the purchase account isidentified responsive to an account phone number communicated by thecommunications device, wherein the communication device's phone numberis different from the account phone number.
 12. The method of claim 1,wherein initiating a transaction between the merchant and the customercomprises sending instructions to an appropriate financial institutionsassociated with the purchase account and the deposit account.
 13. Themethod of claim 1, wherein a mobile enablement center is used toidentify an appropriate payment processing server associated with afinancial institution.
 14. The method of claim 1, wherein a service datapoint is used to initiate a transaction between the merchant and thecustomer.
 15. The method of claim 14, wherein the service data point isidentified by a register of service data points responsive to a query toexecute a transaction between the customer and the merchant.
 16. Themethod of claim 1, wherein the point of sale terminal is enabled toreceive a request for transaction information responsive to a firmwareupdate.